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Chaska EDA approves TIF district and subsidy for EDCO, and sets preliminary EDA levy
Summary
The Chaska Economic Development Authority on Sept. 29 approved a modification to Redevelopment Project Area No. 4 to establish Tax Increment Financing (TIF) District No. 25 for an EDCO project, authorized a TIF agreement and business subsidy, and adopted a preliminary EDA levy for payable 2026.
CHASKA, Minn. — The Chaska Economic Development Authority (EDA) on Monday approved a modification to Redevelopment Project Area No. 4 to create Tax Increment Financing (TIF) District No. 25 to support an EDCO development and authorized a TIF financing agreement and business subsidy.
Elise (city staff) briefed commissioners on the item and noted the proposal had been before the council and EDA in prior meetings and was on the consent agenda for the EDA this evening. “This actually was a consent agenda item for you this evening,” Elise said, summarizing the prior hearings and the purpose of the TIF plan.
The EDA’s action establishes the TIF district (TIF No. 25) and adopts a TIF plan that sets aside tax‑increment revenues for infrastructure needs tied to the EDCO development, including costs for water and sewer extensions and planned Creek Road improvements. Commissioners approved a separate resolution authorizing the execution of a TIF financing agreement and a business subsidy to EDCO. Both resolutions were adopted on unanimous voice votes.
In a related action the EDA approved a preliminary EDA maximum levy for payable 2026. Staff said the EDA levy reflects the city’s inflation plus new growth policy without the building program component used in the general fund levy; staff presented a preliminary EDA levy of roughly $249,217 (about a 7.68% increase as presented) and noted this is a maximum that can be lowered before final adoption.
Formal actions: the EDA adopted (1) Resolution No. 2025‑65 (modify project area and establish TIF No. 25), (2) Resolution No. 2025‑66 (authorize TIF financing agreement and business subsidy for EDCO) and (3) Resolution No. 2025‑69 (establish preliminary EDA maximum levy for payable 2026). All motions passed on voice votes with no recorded roll‑call opposition.
Next steps: staff will proceed with execution of the TIF agreement as approved, begin coordination on the infrastructure work identified in the plan, and publish the EDA levy notice as required. The EDA will adopt its final levy concurrent with the city’s final budget actions in December.
